Just over a month after applying for the European restructuring procedure, Pierer Industrie AG presented the plan to the Wels Regional Court on how the restructuring should succeed. To raise the necessary money, the sale of additional shares in Leoni AG, Stefan Pierer’s spectacular major purchase, is being investigated.
After applying for European restructuring proceedings on November 25, Pierer Industrie AG had to submit its restructuring plan to the Wels Regional Court on Friday, December 27. What does this achieve? The aim is to repay the entire capital of two bonds (total: 115 million euros) and two promissory notes (total: 132.5 million euros) by December 31, 2026 and December 31, 2027 respectively. This means that you have two years gets to raise the money.
Leoni did not take over until 2023
How should this work? On the one hand, the money must flow through the shareholders – in this case Pierer Unternehmensgesellschaft mbH. On the other hand, the possibility of selling further shares in Leoni AG is also being explored. Stefan Pierer only took over the German wiring harness giant in 2023 and even injected 150 million euros to save the company that was threatened with bankruptcy.
In September 2024, it was announced that Pierer had sold 50.1 percent of Leoni AG to Apple supplier Luxshare, for which 205.4 million euros was spent alone. Luxshare is also acquiring a subsidiary of Leoni, which is expected to raise an additional EUR 320 million.
The (partial) sale of investments is under discussion
As part of the restructuring plan, Pierer Industrie AG also announces that additional funds can be generated through the strategic network of SHW AG (Germany) and Pankl Racing Systems AG, based in Styria. Both are subsidiaries of Pankl AG. A (partial) sale of investments is also a subject of discussion.
KTM AG wants to sell its majority stake in MV Agusta
In the wake of the bankruptcy of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklung GmbH, things are also being cleaned up. The majority of Italian luxury motorcycle brand MV Agusta is being put up for sale, as well as shares in Pierer Immoreal GmbH.
The purpose of the procedure is to avoid bankruptcy
Pierer Industrie AG, which also includes Pierer Mobility AG (which in turn includes KTM AG) and Pankl AG, has filed for restructuring proceedings to avoid insolvency. This should be possible thanks to the later repayment date of the promissory notes and bonds, but the interest will be paid as agreed, it is said. The bondholders are represented by Gregor Royer. The creditors of the bonds and promissory notes have until January 31 to submit their claims.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
